Tesla Stock Races To All-Time High: Here's Why

01/14/2020

Tesla stock has been on a relentless tear. What’s going on?

EDITOR’S NOTE: This article comes to us courtesy of EVANNEX, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own at InsideEVs, nor have we been paid by EVANNEX to publish these articles. We find the company’s perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of charge. Enjoy!

Tesla’s stock just broke through its all-time high. Wall Street is beginning to comprehend the implications (and opportunity) for Tesla in China. Discussing the Shanghai Gigafactory, Oppenheimer’s analyst Colin Rusch explains, “First ground to first car was less than a year. I think that put a lot of automakers on notice… Tesla has really proven to be an existential threat for those companies.”

Above: Tesla Model S, 3, and X side-by-side (Source: Tesla)

According to Business Insider, “Colin Rusch of Oppenheimer raised his Tesla price target to $612 from $385 on Monday… beating out Piper Sandler’s $553 target and Canaccord Genuity’s $515 target.” Rusch sees Tesla as a “must-own” stock that could benefit from inclusion in additional indexes. Tesla’s powertrain technology, power and data architecture, and operating system are about three years ahead of the competition, Rusch wrote in a report from Oppenheimer.

Although news in China and analyst upgrades continue to push the stock higher, Tesla’s results in Q4 remain an indisputable catalyst for its soaring stock price. Numbers don’t lie. Tesla’s Q4 numbers help to present a more vivid picture of the company’s overall performance in 2019. Now, after some time to digest Q4, let’s take a moment to analyze how Tesla is tracking as we ahead in 2020.

In retrospect, it’s evident that Tesla surprised Wall Street analysts in Q4 with the company’s production and delivery numbers. Rusch and others have pivoted to a more bullish outlook. Looking back, in February 2018, Tesla CEO Elon Musk set the higher end expectation of Tesla deliveries to be 400k cars — but Tesla beat Wall Street’s expectations reaching the company’s lower end expectation (which was 360k) as the Silicon Valley automaker surpassed that number thanks to record Q4 deliveries.

With Model Y and Semi Truck planned for production (possibly sooner than expected) in 2020, Tesla’s production and delivery numbers are likely to show continued growth. And that’s not all. The forecast for 2020 appears to hold many unique opportunities for growth.

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Written by: Iqtidar Ali. An earlier version of this article was originally published on X Auto.

EDITOR’S NOTE: This article comes to us courtesy of EVANNEX, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own at InsideEVs, nor have we been paid by EVANNEX to publish these articles. We find the company’s perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of charge. Enjoy!